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No one is safe from bankruptcy. That applies as much to you and I as it does to companies big and small. A controversy, a change in trends, a criminal act—these things can break companies in seconds and the world of investing is littered with broken billion dollar companies.

A blue chip stock is supposed to be safe from such occurrences, but this isn’t always the case. Big public companies are not immune from bankruptcy, and the same applies to private companies. In this guide we’ll show you just how far the mighty can fall as we look at major companies and blue chip stock that went bankrupt.

Northern Rock

If you are not in the UK, then you probably haven’t heard of this one. If you are, then it will be all too familiar.

Northern Rock was a huge bank that was listed on the London Stock Exchange. It generated a huge £5 billion in annual revenue and was one of the biggest financial institutions in the UK. No one expected it to fail and it seemed unlikely that such a thing would ever happen, but as you have probably guessed from its inclusion on this guide, that’s exactly what happened.

This one is actually very personal for me. I knew a few people who lost their jobs when this bank went under and I also once owned stock in the bank. This was the first time I truly realized how unstable companies can be, even at the very top.

That stock was given to me to cover a debt. I had helped someone out with a deposit for a mortgage and they were going to cash in the shares for me. Instead, they transferred the stock to me and insisted that I keep it because, and I quote, “It’ll earn dividends and will keep growing. It’s a blue chip after all”. At the time, I wasn’t interested in investing in banks, so I cashed the shares in immediately and used them to buy shares in another company.

A year later, they went into decline and my decision proved to be the right one. Northern Rock simply couldn’t maintain themselves in the banking crises. This crisis hit most banks in most countries and while the bigger ones stood defiant and strong, a few of them collapsed under their own weight. Northern Rock was the biggest to do this in the UK.

Enron

When Houston Natural Gas and InterNorth merged into 1985, Enron Corporation was born. The origins of these companies went back over half a century at that point and the merger served to create one of the biggest energy companies in the United States.

Enron quickly invested its money and began to improve its offerings. In the summer of 2000 their stock was trading for $70 a share. But things quickly turned sour. Promises were made to add huge value to the company and these promises never came to fruition. The company began to suffer and then a controversy hit.

There were fraudulent practices going on and all the audit assistance in the world couldn’t help this energy giant from bottoming out. They filed for a chapter 11 bankruptcy in 2001 and at the time they were valued at $65 billion.

General Motors

This company still exists and you can learn about it by visiting our General Motor Stock page. But the GM of today is decidedly different to the GM of yesteryear. In 2008 they were one of the biggest companies in the world and everything was looking good. They were had some of the highest revenues of any Fortune 500 company and it seemed unlikely that they would collapse, but collapse they did.

In 2009 they filed for bankruptcy and were eventually bailed out. They are now majoritively owned by the US government who ensure that this top US manufacturer still stands strong.

Lehman Brothers

There is not much to say about this former blue chip bankrupt stock that hasn’t already been said. They were the ones to cause the banking crisis because their bankruptcy came as such a shock to the wider world. They filed for this in 2008, putting an end to a company that had previously generated a revenue of close to $20 billion a year.

Lehman Brothers is the poster-child for major companies that have gone bankrupt. They are the ones that many people refer to when the question of whether you can be “too big to fail” arises. Simply put, and as Lehman Brothers proved, you can not be too big to fail and as the old saying goes, the bigger you are, the harder you fall.

It’s just a shame that the fall in this case dragged down many other companies and had a negative impact on the lives of many people around the world.

Washington Mutual

Another top bank that went bankrupt in 2008, Washington Mutual had been listed as a top investment opportunity just two years previous by Forbes Magazine. When they eventually filed for bankruptcy they had assets in excess of $300 billion and were the 6th largest bank in the United States.

Chrysler

Bankruptcy is not necessarily the end. There are many major companies that have declared bankruptcy and a number of them have gone bust, but others have managed to survive, much like General Motors did. Another big company that survived bankruptcy and near-failure was Chrysler, an American car manufacturer that struggled under the force of the financial crisis and was eventually ordered into administration by the former President of the United States Barack Obama.

It took them just two years to get out of bankruptcy and to become a profitable company again, which is one of the quickest turnarounds in history and is a testament to the brand power of this manufacturer. They were valued at just under $40 billion at the time they filed, and they have since been generating revenues in excess of $80 billion a year.

LEGO has been one of the hottest toy companies on earth for the last decade. In that time it has grown into one of the most successful companies and by far the biggest toy maker in the world.

On our LEGO Stocks and Shares page we discussed everything that was good and great about this company. We told you whether you could or could not invest and we also provided some other tips on how to profit from the success of this company. But recently there have been some stark warnings made about LEGO and some suggestions that it may not be as big as once thought.

LEGO’s Past Struggles

In 2003 LEGO was struggling and it looked like it wouldn’t last for long. It had been one of the biggest toys in the world for a few decades but demand was on the downturn and it didn’t look like it would be able to sustain itself for much longer.

In a last ditch attempt to turn things around they hired a man named Jorgen Vig Knudstorp who had helped similar companies to succeed. And the appointment worked very well for this global toy brand, because the decade that followed was one of the most successful that the company has ever seen.

Jorgen Vig Knudstorp took them to the top, by-passing the likes of Hasbro and Mattel. It looked like LEGO had the world at their feet and this continued into 2017. After all, not only were their toys still selling, and not only were they producing millions of LEGO bricks a day, but they also had their films, their games and many other parts of the brand.

But then there was a downturn. This seems to have come out of nowhere and it has been a shock to the system for LEGO. The question is, is this the beginning of the end for the brand or will they turn things around in 2018 and beyond just as they did back in 2003?

LEGO Sales Have Slowed

LEGO has seen double-digit growth in the last 5 years, but the toy manufacturer saw a decline in sales in the first half of 2017. This decline was as high as 5 percent. That might not sound like much, but the fact that there is a decline at all is enough of a worry for a company that has been on the up and up for a number of years now.

This drop in sales was enough to shake the company into action and they immediately announced that they would be laying off a significant number of employees. Over 18,000 employees will likely lose their jobs as a result of this, accounting for around 8% of the total workforce.

The LEGO Revenue Drop in More Detail

LEGO have tried to turn themselves into a truly global brand. They targeted the Chinese market a few years ago and in the first half of 2017 they recorded a growth in the double-digits in China. This was huge and it should have led to a big year for the brand, but at the same time they lost traction in established markets in the US and Europe, and this is why they were hit so hard.

China may be a huge market, but a little growth in a huge country is never going to be enough to offset a huge loss in a big country. For whatever reason, demand for LEGO in countries like the US, UK and Germany was less in the first half of 2017 than was expected, less than it had been in previous years.

Total sales amounted to $2.38 billion. This was enough to keep them at the top of the list for biggest toy manufacturers in the world, but the decline suggests that some of the market is moving away from LEGO and towards brands that have been created by their biggest rivals.

The question is, just what has happened to the brand?

The Reason Behind the Decline

There are a number of things that could have caused this decline in sales. One of the main causes may be consumer fatigue. Simply put, the market has been saturated by LEGO products and by the LEGO brand in the last couple of years and in a marketplace that is built on fads and trends, this could have caused some disinterest to rise to the surface. Kids want the next big thing and a brand that has been around for a long time and that everyone knows about is never going to be that.

LEGO has continued to flourish purely because it’s a toy that all kids want by default and because they have occasional releases that trigger those trends to spark renewed interest in new generations, whether it be in the form of TV and film tie-ins, or because of the release of a new product. But this market is always going to follow trends and it’s always one new, exciting release from seeing a big shake up.

The LEGO Movie, which was released in 2014, played a big role in increasing interest in this toy and it came at a time when it was already growing in popularity. But 2017 has seen two further LEGO Box Office releases and a further two that went straight to DVD. There have also been TV specials and TV shows, and it’s surely no coincidence that 2017 has been the biggest year for on-screen LEGO appearances and this has also been the year in which people have began moving away from the brand.

The Future is Bright

The important thing to note is that LEGO is still huge. It still far outsells anything else on the market and it has the sort of brand recognition that any company would kill for. Kids and adults love it, there are dedicated fan clubs and communities around the world based on this creative toy, and decreasing sales or not, it will still have a bright future.

So, as we mentioned in our LEGO share guide, it is still a good time to invest in LEGO sets, focusing on limited editions ones and preparing for these to increase in value like so many others have done in the past.

If you keep them in good condition, get the sets that are produced in small numbers and have something different to offer, and make sure you keep for at least a few years, then you can earn a small profit from investing in LEGO.

We have discussed countless insurance firms here on Buy Shares In. These companies are usually a good bet for investors, but why is that? Are these companies actually profitable in a world where they seem to be handing out huge payments, getting sued and falling foul of legal restrictions and fines?

There’s only one way to find out. So, if you’re interested in Blue Chip stock like State Farm, then read on to discover if insurance companies make money and just how they do it.

How Do Insurance Companies Work?

The insurance industry was formed hundreds of years ago when merchants were provided with a way to safeguard their ship’s cargo against loss. They were transporting vast sums of goods across huge oceans and it wasn’t uncommon for these ships to get pirated or wrecked. Insurance was therefore a way for them to minimize risks and it’s the same today, only you can get insurance for everything you own against most eventualities.

You pay money based on a factor of risk determined by the insurance company and they agree to pay you a lump sum in the event that something untoward happens and you suffer major financial loss. It seems like a risky business for them to get involved with. After all, the money they pay out is far higher than the money you will put in and surely there will be enough claimants for them to run at a loss? Well, yes and no.

How Do Insurance Companies Make Money

Insurance companies have three major expenditures and all of the money they receive is pushed into one of these three areas.

The first is the pool of money put in standby to pay for all of the claims made against them. They have a fairly good idea of just how many claims there will be and how much will be claimed over the course of a year and they always have more than enough to cover these costs, as you would expect.

The second expenditure is marketing. Customers don’t just rock-up to their door and start paying them money. They need to spend to bring them in and there is a marketing budget for this. The final pool of money is used to invest. This means they operate much like a bank does, knowing that their actual operation may lose them money from time to time but that they will always have that investment cash to turn to and that it will continue to turn over a big profit.

Do Insurance Companies Make Money on Premiums?

Every year is different. Insurance companies that underwrite for home content loss and residential properties will suffer bigger losses in years where there have been particularly damaging storms. Generally, they will spend between $0.90 and $0.98 of every $1 they receive on paying for claims.

As you can imagine, once you add the marketing costs into this then there isn’t much left. In fact, most insurance companies do not make money from the very thing that they were setup to do. Their earnings come from the investments they make. If you give them $10,000 over the course of 30 decades and then pass away leaving $150,000 to your family, then it looks like a sizable loss on the surface, but that $10,000 could have been doubled or tripled fairly easily and once interest is added, it grows quite quickly.

All insurance companies need to very delicately balance the books in order to make sure that fraud and underwriting doesn’t leave them deeply in the red at the end of the year. This is where premiums come in. They will offer you a figure based on the condition of your health or your home, as well as the amount of fraud that they can expect to receive over the course of a year. This is a complex process and while it’s not an exact science, it means they can predict what kind of payments they are expected to make over the course of a year and even a decade and adjust all future premiums accordingly.

These premiums are changed individually and across the board. So, if you have been an insurance paying homeowner for 20 years without incident then you can expect your prices to come down. If you suddenly make a homeowner claim (see InjuryLawService.com) then you can expect future premiums to increase. However, factors such as a year of bad storms and an increase in fraud will have just as much of an impact on your premiums.

It might not have anything to do with you, but they still need to make money and so they factor these things in. That’s why you see so many claims about cases of fraud sending everyone’s premiums up. It’s not just a scare tactic, it’s actually happening and because they are only earning a couple of cents on the dollar they have very fine margins to work with and will do what it takes to maintain these.

So, Do Insurance Companies Make Money?

As mentioned already, this is a somewhat yes and no answer, but the same can be said for many big businesses. There is a strange trend for them to lose money and focus instead on growth. Amazon is known to lose money on countless products just so they can be the cheapest retailer of said products and they are also known not to draw major profits because they invest them back into the company. The same can be said for Google, albeit to a lesser extent.

Then you have the banking industry which runs on margins that are as fine (if not finer) than the insurance industry. After all, they may make money from credit card interest and overdraft charges, but when you factor in all of the money they pay out in interest on saving accounts and current accounts, it’s easy to see how those margins are so fine.

That’s because their goal is just to get you money and essentially reward you for giving it to them. They then take this money, invest it and try to make significantly more investing it than they will ever pay to you in interest. Insurance companies operate in a similar way, even if the setup is a little different.

When things on Wall Street are good, they’re very good. But when they’re bad, it’s not only the market that reacts.

There’s a dark side to Wall Street; traders are eager to see a return on their investments. And brokers feel an urgent need to perform, regardless of market conditions. Unfortunately, this pressure can cause both investors and professionals to suffer. Many turn to drugs, and still others determine that the weight of the job is too much to handle.

What really happens on Wall Street when professionals feel burdened by financial hardship? What lies on the darker side of Wall Street? Are drugs as prevalent on Wall Street as popular culture would have us believe?

Drugs are, in fact, commonplace on Wall Street. From the doctor-prescribed to the more illicit street drugs, mind-altering substances have become par for the course among, in particular, brokers.

Financial Crisis and Mental Health

Consider the Great Depression. Prior to the United States stock market crash in 1929, the world-wide suicide rate remained constant, at about 12.1 per 100,000 people. Over the eleven years which followed, that number jumped to almost 19.

The United States suicide rate across 100 cities was an alarming 20 per 100,000 deaths. In Davenport, Iowa, for example, the number was highest, at 50.3. Other nations fared no better. Austrian suicides claimed 34.5 of every 100,000 deaths. There was an immediate spike in the numbers following the market crash, and those numbers continued to increase in the two years which followed. It wasn’t until the beginning of World War II that they began to decline.

The Great Depression is only one instance of a decline in mental health due to financial crisis. The global financial crash in 2008 prompted an additional 5,000 deaths, each ruled suicide. Most were men.

Alden Cass is a psychologist who works primarily with Wall Street professionals. In 2000, he published a study detailing the mental health of retail brokers. His findings? Approximately 23% of subjects suffered major depression. Of these, most were men, and most had among the highest income levels within the field.

This is in no way meant to be an exploration of suicide on Wall Street. Instead, the purpose to citing these facts is to bring to light just how acutely the financial and professional stresses of Wall Street can impact a person.

Financial stability has a tremendous impact on mental health. And, of course, not all who struggle with job-induced stress opt to end their lives. Some, it would seem, do just fine. Others have found a different way to cope with hardships: substance abuse.

Substance Abuse on Wall Street

You may remember the story of Jordan Belfort, a former stockbroker. Known as the Wolf of Wall Street, Belfort’s memoirs became popularized by the film of the same name.

Belfort’s memoirs, and the subsequent film adaptation, were among the first attempts by a Wall Street broker to truly illustrate just how stressful the financial culture can be. In “The Wolf of Wall Street,” Belfort describes Quaaludes, in particular, as a common drug of choice during the 1990s.

The 1990s weren’t the beginning of it, though. Wall Street brokers have long been on the radar of the DEA. One of the most notable cases was in 1987; the Drug Enforcement Administration conducted raids of four Wall Street brokerages. That morning, 19 employees were taken into custody for possession and distribution of cocaine.

Drug use on Wall Street has changed over the years. While cocaine has been a drug of choice since as early as the 1970s, Wall Street itself has changed. While there are still actual and literal brokerage offices on Wall Street, the modern trader takes a more remote approach.

The younger generations have become increasingly interested in trading, in particular day trading. As a result, drug use has changed, too. Sure, there are still Quaaludes. There’s still cocaine. But now, Ritalin, Adderal and Ecstasy have entered the “market.”

Provigil, Zoloft, Xanax, Lorazepam and even Viagra are prescribed to brokers, simply to deal with the stresses of the job. Uppers are most common, while marijuana is frequently consumed to counter them – to “chill out,” as it were.

But why? Wall Street brokers hold the American dream job: a fast-paced career in one of the financial capitals of the world. And money. Lots of money. Why are stock brokers and other Wall Street employees still turning to drugs?

Drugs and Wall Street: A Necessary Evil?

Stress is inexorably linked to addiction. And in addition to being linked with addiction, it’s also partially responsible for addiction treatment failure and relapse. Loneliness can prompt drug use. Peer pressure can, as well. Experimentation is commonly associated with the onset of addiction. “Will this Adderall help me get through the day any more easily?”

Wall Street employees sometimes work in excess of 120 hours each week. They hold the responsibility of others’ fortunes in their hands. They frequently miss a work-life balance, missing children’s birthday parties and anniversary celebrations. They are at constant war with both their minds and their bodies.

As a result, these people turn to that which may make them feel. Feel what? “Anything,” some have responded. Alcoholism is frequent amongst Wall Street brokers. Eating disorders are, as well. Then, of course, there are the drugs.

A vast majority of Wall Street brokers are phenomenally intelligent people. In interviews, these employees have described their decision to turn to drugs, claiming that they’d grown accustomed to being in control. Once work on Wall Street began, they no longer felt that way. Drugs allowed them some to regain some semblance of control.

Older employees have struggled with addiction caused by a change in mental health as well. These workers have noted that there are many more regulations now. So many, in fact, that it’s a full time job just to keep up with them. They’re not doing more work and making less money.

Old and young, seasoned and inexperienced, Wall Street employees continue to turn to drugs to make the career more bearable. Unfortunately, as noted previously, drugs aren’t always the answer. The suicide rate on Wall Street is 1.5 times the national average.

The Changing Landscape of Wall Street

Today, not all Wall Street employees report to an office, where they may be offered access to mental and physical health services. The internet has spawned a generation of DIY and virtual brokers; many brokers today can be found camped behind their computers in the confines of their homes.

The change in landscape doesn’t mean a change in addiction, however. Young brokers report an increased use of Adderall and Ecstasy, among others. Wall Street is known for its party culture, but that extends to those who aren’t physically in New York.

And it likely won’t stop. As long as the physical and mental demands of finance take a toll on those who work in the field, the drug use and suicide rate among these people will likely remain very high. While brokerage firms have begun to assist in providing interventions and mental health care, these services do little. Drug use is, simply, socially acceptable on Wall Street.

Whatever your business is, there’s a good chance you will be pulled to and fro from your place of work to destinations all over the world. So, make sure you pay attention to these business travel tips to ensure you can continue to work regardless of where you are in the world.

Business Travel Tip 1: Book into Business Hotels

It really does make a difference to stay in a business hotel. They tend to have better Wi-Fi and you have more reason to complain if this is not working. They also offer concierge services and have business rooms and conference rooms where you can access everything from printers to landlines, faxes and more.

In 2017, all of that might seem a little redundant, but there are still uses for it and it’s a good thing to have at your disposal. These hotels also tend to be devoid of families, which means there are very few little children running up and down the hallways interrupting you with screams.

Check with sites like Booking.com (owned by Priceline) to find the best place to stay. The speed of the Wi-Fi is also important. You might be called upon to have a video conference, you might want to catch the opening and closing of the New York Stock Exchange to make some trades. Whatever your reason, you need fast connections and the speed are never shown in the descriptions of the hotels.

For this you have to look at the reviews. Focus on the negatives first. If it’s a business hotel, as it should be, then the guests should have similar needs and if they are leaving bad reviews then you better believe they would mention slow Wi-Fi if that indeed was an issue.

If these reviews say that the issue was intermittent or if the hotel has responded to say it was a one-off, then contact them beforehand. Let them know that a high-speed connection is essential and that you expect a discount or full refund if they are not able to provide this. If they refuse, move onto another hotel.

Business Travel Tip 2: Bring a Dongle

You just can’t trust hotel Wi-Fi, even if there are no bad reviews. You don’t want to be left in the lurch because half a dozen teenagers are hogging the connection by uploading pictures to Facebook (NASDAQ: FB) and Instagram.

So, as a backup plan take a Pay as You Go Dongle. These devices will allow you to connect to relatively quick Wi-Fi wherever you are. They can get expensive if you use them too much so they should not be a Plan A. But as a backup plan they are perfect. Just be sure to top it up before you leave.

Business Travel Tip 3: Pack Well and Light

Yo can move much quicker if you pack light and don’t take any big suitcases. You should aim for carry-on luggage only, maybe with a toiletry bag. You have to be familiar with the specifics of these and of quality luggage in general. Shop well and you can save yourself time and money right now, as well as space and effort later on.

The last thing you want is to be forced to wait for the carousel to spit out your bag after you’re late for a business meeting, or for you to have lost an essential item amongst all of your clothes. We like to pack light and tight, making sure that toiletries have their own bag, documents have their own folder, and everything else is orderly and neat.

Business Travel Tip 4: Look for Premium Programs ad Schemes

If you can’t afford to wait in long lines and to join the meat factory that are airports, then look at the expedited travel programs. These range from “VIP” schemes at the airport that allow you to skip lines, to frequent flier programs that reward you for your globe hopping exploits. Everyone from EasyJet (LON: EZJ) to American Airlines (NASDAQ: AAL) offer these.

They may seem like needlessly expensive extras right now, but if they are within budget they are well worth it. When you’re tired, late and you just want to get tot he hotel or to a meeting, you’ll be thankful if you can skip the lines at the airport, just as you’ll be thankful when your frequent flyer miles mean you can take free business trips.

Business Travel Tip 5: Rest in the Air

Here at Buy Shares In we have done a lot of business travel ourselves. We’re used to working in many different countries, to trading stocks and CFDs in all time zones and to generally being workaholics. Take it from us when we say that the best thing you can do in the air is to put your phone away, put the laptop down and don’t do any work whatsoever.

If you force yourself to work in the plane then you’ll be more fatigued and stressed when you land. Not only will this make it harder to endure meetings and work when you arrive, but it will also increase your jet lag and generally make your entire trip unbearable. We find that the best thing to do is just to relax, maybe by watching a film or reading a book.

If you take your mind off work completely then you will be fresher when you land and better prepared for all of the days to come. If you work on tight schedules, you can’t afford mistakes and you have a lot of responsibility, then this could be crucial.

Finally…

Our final business travel tip is to try and find time to enjoy yourself. We know you are there to work, but you’re seeing the world, so it’s only right that you experience it as well. You could travel the world for years, seeing it all but not knowing anything about the cultures, the language, the way of life.

You have been afforded a unique opportunity that many would kill for. So, whether you’re traveling domestically or internationally, make sure you find time to enjoy yourself and to see what local life is like.

Health Care Reform. What is it? Why do we need it? Do we actually need health care reform in the United States?

The Patient Protection and Affordable Care Act, also known as Obamacare, was signed into law by President Obama in 2010. Now, the current administration is looking to repeal it.

There are pros and cons to health care reform; just as Obamacare has its benefits and its downsides, health care reform will impact the American population and our economy. So how, exactly, did the Affordable Care Act change the economy, and why are so many looking to do away with it?

The Patient Protection and Affordable Care Act

For a great many years, the United States government has struggled to devise a way to make Universal Healthcare an option for Americans. As one of only a handful of developed countries not covered under such a universal plan, lawmakers have spent many days in debate over how to make insurance accessible to everyone.

Health insurance products, prior to the ACA, had been at the discretion of the states. In Massachusetts, for example, MassHealth existed to ensure that all individuals were covered by health insurance. Those who qualified under specific income guidelines were granted the opportunity to take advantage of public health insurance. Those making above that income level could purchase private insurance, or be subject to a tax penalty.

Obamacare worked in much the same way. Private insurances were consolidated and purchased through the Marketplace. Those who chose not to purchase insurance, and who could not qualify for public assistance, were fined a penalty on their federal taxes.

So what was the result? Simply put, the result was a lot of uninsured people. The premiums of Obamacare, in its beginning stages, were just unattainable for many families who didn’t qualify for public aid. Medicaid was expanded in several states, but in others it was capped and made inaccessible. In short, people opted to pay high emergency care and as-needed health care costs in lieu of paying the high deductibles and premiums offered by the ACA.

Health Care Reform

The Affordable Care Act did have its benefits to the American economy. First, it caused an increase in consumer spending. Raised prescription drug costs and higher insurance spending contributed to this. Second, there was a decrease in state-level spending on healthcare. This, in turn, freed up money to be used against the national deficit. The Congressional Budget Office projected that, if left in place, the ACA would reduce the Federal deficit $16 trillion over ten years.

However, it can’t be left unsaid that Obamacare did leave many Americans uninsured. The current administration has referred to Obamacare as a “disaster;” while that may or not be so, there are certainly areas which could use improvement.

There have been at least five revisions to the proposed repeal, and the most significant point of note is this: under the new proposed plan, the administration would cut back considerably on Federal funding to Medicaid and Medicare recipients. This would leave approximately 19 million adults uninsured.

This spending cut, however, would free up state money to be utilized elsewhere. It would also theoretically increase consumer spending. That is, if those uninsured choose to pay the costs of emergency healthcare and prescription medication. There’s always the risk that those individuals may not seek medical attention at all.

Obamacare certainly has provided benefits to the economy. And the proposed changes have, thus far, fallen short. So what’s wrong with Obamacare, and how can lawmakers truly fix what’s currently in place?

The Trouble with Obamacare

The first problem with the Affordable Care Act is that the plans were expensive. While the costs of those plans were designed to decrease over the years, that fact did little to assist people who were forced to purchase insurance plans from the Marketplace. The choice was simple: pay a high premium, or pay a hefty fine.

The fines themselves were confusing. Depending upon family size, income, and other factors, each America was assessed a fine. Or a percentage of AGI. Or an amount that he or she was responsible to pay. The list goes on, and, like much of the US tax code, it may take an attorney to figure out.

Signing up for Obamacare was meant to be easy, but in fact was quite complex. New insurance agents were hired to assist, but often they were unfamiliar with the rules of the ACA. At the launch of the Marketplace, the website did not work at all. Confusion about plans and how to sign up caused many Americans to miss the deadlines.

For those who could afford the Marketplace plans, Obamacare was a great program. However, most of those individuals were already enrolled in company insurance plan, and the ACA just muddied the insurance process. Plans were cancelled and individuals were forced to re-enroll in different, sometimes inferior coverage.

The Affordable Care Act initially existed to provide all Americans with health insurance. And in fact, that likely would have been the result if left in place. But there were too many short-term problems with the program which were insurmountable to many Americans. This leaves the current administration under a lot of pressure.

What’s Next for Health Care Reform?

Recently, President Donald Trump’s newest plan to replace Obamacare was voted against, and legislators are left, once again, at ground zero. Democrats and Republicans are in stark opposition, as Democrats want to leave Obamacare in place while the Republican Party seeks to repeal the law.

The problem for many is that a repeal of the law would be just that. A repeal, with no new plan in place as of yet. Opponents of the repeal see this as dangerous: Obamacare was initiated without enough planning, shouldn’t a new plan be fully developed and ready to replace the ACA?

Regardless of any lawmaker or American’s stance on Obamacare and the proposed health care reform, it’s clear that there are benefits to Obamacare and that there would be certain benefits to refining the law.

Done right, a universal healthcare plan such as the ones proposed by both parties would help to decrease the national deficit. Money would be freed up at the state level to be added to other programs. Consumer spending would increase as more Americans bought insurance and paid for health care. Unfortunately, it’s up to lawmakers to achieve all of these goals while still keeping health care accessible to all Americans. It’s not an easy task; hopefully the Trump administration can work together to find a solution.

We at Buy Shares In like to give you the most recent stock market information. But sometimes history is worth taking a look at, too. Many of us think of the stock market crash of 1929 and the ensuing depression and wonder if history could repeat itself. In short, no. But if there were to be another stock market crash, there would be several similarities.

To determine if a crash similar to the crash of 1929 could happen today we need to first examine the root causes. It’s hard to place the blame on any one single factor. Buying stock on credit, inexperienced traders, and inflated stock prices all combined to create a volatile market that was primed for the bottom to fall out.

The Stock Market Crash: What Happened?

The 1920s, often known as the “Roaring 20s”, were a period of perceived prosperity and financial success in the United States. The rapid proliferation of industrial techniques and technology caused a sharp rise in production. With output soaring, businesses were faced with the challenge of attracting buyers in a competitive market. The answer was the rise of installment plans. “Enjoy while you pay” became a mindset of the American consumer.

Following World War I, the celebration of what was perceived as the end to global conflict increased consumer confidence. More and more individuals began investing in the stock market. Many saw the steadily rising market as a way to gain quick income. Banks and brokers exacerbated the problem by loaning individuals money to invest or by allowing them to buy additional stocks on the margins of held stock.

As stock prices continued to rise, investors saw opportunity and invested more and more, eventually leading to a situation where the value of a company’s total stock dramatically exceeded the actual value of the company. Unfortunately, the introduction of installment plans and the rapid rise in purchasing power meant that most families had, by the end of the decade, made the purchases they wanted to make. The result was a consumer economy that was saturated with goods. The boom had run its course, but investors continued to pump money into the market, inflating the bubble.

A Self-Correcting Stock Market

Governmental policies did little to stifle the ever-growing problem. Conservative presidents Warren G. Harding and Calvin Coolidge were hesitant to stand up against big business. Prosperity and strong economic times favored both presidents. Both believed that action to slow down what was seen as business growth would be seen as holding back the success of the free market and the national economy.

Inevitably the market had to correct itself. The problem with investing borrowed money was that when the market began to fall, investors had little choice but to sell their shares before the price dropped. This caused a massive selloff when the market began its largest fall on October 29, 1929. So many investors were trying to sell off their shares that the tickers of the time were unable to handle the volume. Many were reported to be delayed up to two hours, adding to the confusion and panic.

Could the crash happen again? Look at the situation which led to the crash of 1929 and compare it to today’s. The 1920’s were a time of increasing dependence upon credit, an inflated market, individual investors, and weak governmental regulation.

Could Another Stock Market Crash Happen?

A look at today’s dependence on credit gives a very similar image to that of the 1920s. Nearly every good or service can be paid for on credit. There are major credit cards, department store cards, fuel cards, etc. Add to these automobile loans, personal loans and mortgages and you begin to see a very similar image to that of the 1920s.

The largest difference between today’s investor and the investor of the 1920s is the rise of day trading. Today, the Average Joe can open their laptop and within a few clicks make whatever moves they want. While convenient, this has the potential to be catastrophic. Not all mobile investors are trained in the ups and downs of the market. In the face of what could be a short-term downward slide, there is potential for day traders to contribute to a massive sell-off.

Stock exchanges have put in place processes to help limit the amount of emotional or fear-based trading. Circuit Breakers, or pauses in trading designed to allow traders time to collect themselves are a great example. These pauses will undoubtedly have some effect on trained investors. The question is whether a break in trading will alleviate the panic in an untrained investor sitting behind a laptop. In today’s global economy, investors could simply sell their shares on a different exchange, expanding the problem.

Stock Market Education is Crucial

Educated investors know the best way to weather a downward slide in the market is to stay the course. For example, following the record loss of 777.68 points on September 29, 2008 the market bottomed out on March 6, 2009 at 6,443.27. In March of 2013 the Dow reached record levels previously set just a year before the 2008 drop.

This shows that the market is very resilient and has the potential to bounce back rather quickly in today’s world. The problem is that a large number of Americans are in or nearing retirement. These individuals have much more to lose if the market tanks and does not recover rapidly.

Finally, we have to examine the market to see if it is inflated. We are currently in the 2nd largest bull market in history. Since March 2009 the market has gained 14,591 points, or 232%. If this is indeed an inflated market, it will correct itself. The reaction of investors will determine if the downward movement in the market is merely a natural correction or a crash.

So, could another stock market crash happen today? Probably not on the same scale as the crash of 1929. Our market is very resilient, and it would be difficult to simulate the events of 1929.

But it’s extremely important that we educate ourselves about the stock market. Knowing when to sell and when to hold is only a small part of it. Investors also need to be mindful of avoiding panic. Such reactions only serve to make a falling stock market worse.

We live in quite a collaborative world. In our day to day lives, it’s not uncommon for us to share calendars, email pictures, send financial reports and even sign contracts using online collaboration software.

Of these programs, Dropbox has become one of the most widely used. Of course, some people opt for the free services provided by Microsoft One Drive or Google’s sharing applications. But Dropbox has long been a go-to for many people because of its simplicity and its security.

It’s made news that Dropbox may soon be issuing an IPO. When we learned this, we wanted to find out if Dropbox stock would be worth the buy. Here’s what we learned about the company and about its potential should the organization go public.

Can you Buy Dropbox Stock?

As of the time of this post, you can’t buy Dropbox stock; Dropbox is a privately owned company. The company is based in San Francisco, California, and was founded in 2007 by MIT students Arash Ferdowsi and Drew Houston. The premise behind the service is simple. It looks and acts like a memory card or a folder on your computer desktop, but it’s accessible from anywhere. Using the cloud, Dropbox registrants can share and access files from any internet enabled device.

The company has an estimated valuation of about $10 billion dollars, and it’s reached this success by maintaining an outstanding reputation for security. While Dropbox has weathered much criticism for data breaches and even password leaks, it’s managed to come out ahead in the end against competitors such as Box (NYSE: BOX), Google Drive and Mozy (NYSE: EMC).

Cloud computing has become an essential tool for both personal and business use, and more and more consumers are turning to secure services like Dropbox to protect and share information. While you can’t yet buy Dropbox stock, the service is expected to go public later in 2017.

When Will Dropbox Stock be Available?

In 2016, Dropbox decided to delay its plans to issue an IPO. Technology, in particular cloud based computing, didn’t do well in the markets and Dropbox CEOs did not want to fall prey to a lousy market. But the company has announced that it will likely go public in the later months of this year.

In 2015, Box issued an IPO, and was at that point valued at about $2.4 billion. Since that time, the competitor has seen shares increase from the IPO price of $14 per share to its current price at around $19. But Box is now only valued at about $2.3 billion, a decrease from its 2014-2015 valuation.

Dropbox has also enlisted the financial backing of many venture investors. The company has raised $600 million from the likes of JP Morgan, Benchmark and Salesforce Ventures. The company has reported that its cash flow is positive, and despite being a free service, the company does make a little bit of cash through its storage programs. Its individual accounts cost users $10 per month for 1 terabyte of storage. Dropbox also offers corporate plans at a cost of $150 annually per employee.

Likely Dropbox Stock Price

Because Dropbox does not disclose its financial information, it’s difficult to predict what the Dropbox IPO will cost. Furthering the challenge of this prediction is that the company has very few competitors with a similar business structure.

For example, one Dropbox competitor is Google, with its Drive service. Google, of course, went public in 2004 with a price of $85 per share. But Alphabet wasn’t solely a cloud storage service. Similar to Google, Microsoft’s OneDrive is just one of many products offered by the company.

To determine a likely Dropbox stock price, it’s easiest to look at companies which are similar in services offered to Dropbox. At its IPO, share in Box were available at $14. Mozy is owned by parent company EMC. That stock went public in 1986, so to compare EMC with Dropbox would be like comparing apples to oranges. Time will tell what the Dropbox stock price will be, but analysts suggest it will be in the $20 range. This is in keeping with other technology offerings such as Box and Snapchat.

Will Dropbox Shares be Worth it?

The technology market is highly competitive and highly volatile. As mentioned, 2016 wasn’t a great year for technology stocks, and although 2017 is looking better, more investors are turning away from the industry.

Because of newly extended credit and because the company’s cash flow is in good shape, Dropbox will likely do reasonably well following an IPO. However, it’s important to note that Box, before its IPO in 2015, was also in good financial standing. Box stock has remained stagnant at best.

The key for both Box and Dropbox is to expand services. The companies may never be in direct competition with huge names in the industry like Google and Microsoft (NASDAQ: MSFT), but by increasing enterprise solutions and expanding services offered, both Dropbox stock and Box stock may see share prices rise. If Dropbox can succeed in offering more various services and retaining its reputation as a secure cloud storage solution, we think Dropbox shares will be worth it.

If they are going to launch their shares with an IPO, then they may just do that. After all, they know that they will be entering a competitive market and they know that they need to make an effort to standout. So, before you think about buying Dropbox shares in the future (if indeed they do have their IPO) then be sure to focus on any improvements they have or haven’t made.

Dropbox Stock Symbol

When Dropbox does pull the trigger on the IPO, you’ll find the Dropbox ticker symbol and information pertinent to the stock on the Buy Shares In website. We obviously can’t yet quote a Dropbox stock price or give you information about the Dropbox stock symbol, but check back frequently. We will update our information as it comes available.

If you’re interested in learning about other tech stocks, be sure to check out our investment guides linked in the header above. Here, we’ve provided information about companies such as Instagram and Twitter (NYSE: TWTR) as well as a general overview of tech stock.

Also, be sure to check out our information about trading platforms. We cover a wide range of options for investors in our unbiased reviews. These reviews will show you how to buy shares in Dropbox or other companies.

Ranked by GDP, China is one of the biggest economies in the world. And according to Bloomberg, Forbes and US News, it’s expected to surpass the United States within the next several years.

But, as solid an economy as the Chinese have enjoyed, it’s not been unwavering. Back in the mid-2010s, the world watched the Chinese stock market crash, and economies across the globe were concerned, to say the least.

Why did the Chinese economy falter as it did? Could it happen again? Let’s look at what happened, and the probability that the Chinese stock market will experience a similar occurrence in the future.

The Chinese Stock Market

The Chinese stock market is comprised of three major exchanges. These are the Shanghai Stock Exchange, the Shenzhen Stock Exchange and the Hong Kong Stock Exchange.

These markets operate a bit differently than those in the United States or elsewhere in two ways. First, the companies listed within the exchanges used to be largely state owned. That means that the government had a substantial say in what happens to the markets.

The second way these markets differ is that investors treat them differently. Historically, the Chinese stock markets have offered a bit of a “casino” for investors, and although that’s becoming less and less the case, it’s an important difference.

Retail investors comprise around 85% of Chinese stock market activity, as opposed to about 25% in America. Chinese households prefer, instead, to invest in banking accounts and other assets.

So, to summarize, the Chinese stock markets and the businesses which are listed therein have been historically state owned. If the market appeared to be dipping, the Chinese government could easily inject money into the economy to bail their companies out.

The Chinese Stock Market Crash

Up until 2015, the Chinese stock markets were impacted very little by other aspects of the economy. As a result, a stock market bubble was created as new investors began to enter the markets. Even businesses which had previously never traded were now enthusiastic about investing, and the bubble continued to grow.

Until it popped. On June 12, 2015, the Shanghai Stock Exchange lost a full third of its value, and the smaller exchanges experienced even more dramatic losses. The Chinese government worked frantically to prevent an economic catastrophe. They fed money to brokerages and compelled them to buy stocks, while ordering companies not to sell shares.

Meanwhile, markets across the world experienced panic as a result of this seemingly stable economy experiencing such a crisis. The Chinese economy was failing; how would this impact imports and exports, or the economies of other nations? Investors worldwide began to show signs of hesitancy.

The Chinese government’s bailout worked for a short time. The markets appeared to rebound a bit after the initial plummet, but over the next several months it saw more losses.

Chinese Stock Market Recovery

The Chinese government faced difficulty in 2015. Where government-owned businesses had once constituted the majority of traded stocks, now more privately owned companies were listed on the exchanges. With no way to bail these companies out, China was left facing a failing economy with no remedy.

In the months following the June 12 crash, Chinese stock markets remained turbulent, but then in early January of 2016, the markets were halted twice due to a 7% fall. On March 16, the Chinese stock market reached a 15 month low, further worrying both Chinese and global investors.

As stated, the Chinese government has a history of injecting money into the economy to ensure that the market remains stable. Following the low of March 16, the government did just that. Once again, a state backed agency offered loans to brokerages, assisting in balancing the teetering economy. Slowly, investor confidence rose again, and over the next several months, the Chinese economy was once again regaining in strength and declining in volatility.

Chinese Stock Market Crash: Can it Happen Again?

In short, the answer is yes. The Chinese stock market is wildly volatile, and booms and busts are not at all uncommon. In fact, the Chinese economy has very little to do with the stock market. It’s not uncommon for the economy to be suffering in terms of GDP or other factors, while the markets are booming. Likewise, the Chinese economy can be on the path to surpass the United States while the stock market is in trouble.

Because of this, investors don’t pay the same type of attention to the numbers as investors in the United States or other economies. They invest with very short term memory, and it’s likely that another bubble and subsequent crash will occur.

Secondly, the Chinese government has a huge hand in the stock market. A majority of stocks listed on, as an example, the Shanghai Stock Exchange are at least in part government owned. If the stock markets start slipping, it’s very easy for the government to issue a bailout. In the past, the state has attempted to change regulations to encourage more private investors, but haven’t been successful.

Finally, the Chinese stock market is heavily influenced by governmental rhetoric. The United States experiences this to some extent. As government leaders issue statements about the economy, investors react. But as a whole, US investing law remains unchanged. Chinese investors suffer a slightly different pattern. The government frequently issues statements which change policy entirely, and this causes investors to panic as they attempt to interpret the new rules.

Chinese Stock Market Crash: Speculation

There are other issues affecting the stock market which are worth a mention. High numbers of speculative investors as compared to the number of long term investors is a factor. The lack of reliable information about the companies listed within the exchanges is another. There is also a perception of the Chinese stock market being an avenue to “get rich quick.” Many investors have become very wealthy by playing the stock market, and there’s little incentive for long term investors.

So yes, the Chinese stock market can crash again. And it’s likely that it will. The Chinese government is sending its investors conflicting messages. While it claims to seek to create long term investors, it’s still too thickly involved in the markets to cause this to happen. Once the government lets the market drive itself, perhaps it won’t be as erratic.

We’ve gotten some questions over the past few days about mock stock trading. We’d be happy to answer your questions, but it’s actually a topic that we’ve covered quite a bit here at Buy Shares In. So we’ll keep our answers short and sweet, and direct you to a few other resources that we’ve made available to you.

What is Mock Stock Trading?

Mock stock trading is pretty much exactly what it sounds like. Mock stock traders can trade the big names on the markets like Twitter and Microsoft, but use virtual currency to do it. Mock stock trading is a great way to learn how investment works before you put your own money at risk.

Is Mock Stock Trading Safe?

Yep! Mock stock traders use currency like points, virtual money or physical items like chips to buy and sell stocks. There are hundreds of free programs available online for users to try, like Plus500 and Trade.com. Each have a demo account that investors can open; they’ll use virtual money to build a portfolio and then buy and sell as if they were real stocks. There’s no risk to you, so feel free to spend all your virtual cash!

Why Should I Do Mock Stock Trading?

There are lots of good reasons to open a mock stock trading account. It’s an excellent way to learn the markets, first of all. Like we mentioned, there’s no monetary risk to you and you can trade thousands of virtual dollars. It’s exciting to see how much money you would have made if you’d bought into that IPO last year.

Another reason is to teach your kids about the stock markets. There are mock stock trading programs like Student Stock Trader that are marketed and designed for kids. It’s never to early to learn about the markets.

Finally, it’s just plain fun! Most of the free stock trading games you find online include the option to create your own game. Who needs an NCAA bracket when you and your buddies each have a killer virtual stock portfolio?

So How Do I Do It?

This is the point where we direct you to other sections of the Buy Shares In website. We’ve done tons of reviews and have even played a few games ourselves, and have compiled them all for you on this site.

HowTheMarketWorks is a good place to start if you want a fun little game to play with your friends. The game is simple to set up, and even kids can play.

If you want a game to play that’s exclusively designed for kids, try Student Stock Trader or take a look at what we’ve got to say about stock market worksheets.

If you’re looking for a few reviews of programs we did and didn’t like, we’ve got a few of those, too. We covered a few stock market simulation games, as well as our more recent post about the best free stock trading games.

Take a look around, and let us know if you have any more questions! Have fun with your mock stock trading!